Grainger, Britain’s largest market-listed landlord, is being circled by potential bidders considering a £1billion-plus takeover.

The interest follows news last week that activist investment group Crystal Amber has taken a 3 per cent stake and is agitating for changes to boost returns.

At least one UK property company and a major insurance group are understood to be looking at a bid. The group is valued on the stock market at £930million or 225p a share, but analysts believe any bid would have to be at least £1.25billion.

Takeover: At least one UK property company and a major insurance group are understood to be looking at a bid

Crystal Amber, run by investment veteran Richard Bernstein, is pressing for a meeting with Grainger chairwoman Baroness Margaret Ford to discuss an overhaul at the company. Bernstein told The Mail on Sunday: ‘We think it unlikely that Grainger will be independent by Christmas.’

Grainger last week announced the appointment of a new chief executive, Helen Gordon, to succeed long-standing incumbent Andrew Cunningham next February. Now, Grainger is understood to want her to start earlier to defend the company against unwanted predators.

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The group may also consider selling some of its assets, such as its equity release division, which comprises more than 2,500 properties valued at about £250million in total.

Grainger is primarily known for its 3,750 regulated tenancy homes, which it has bought at a discount but will be able to sell at a significant premium once they are vacated. It owns a total of 14,000 properties in Britain and a further 7,000 in Germany.

Crystal Amber also believes that Grainger’s £50million-a- year interest rate bill could be cut by more than a third to boost shareholder returns. The group’s debts amount to just over £1billion and the average annual interest is 5.1 per cent.

‘It seems baffling that Grainger has to pay over 5 per cent interest when an individual can borrow against residential property for 3.5 per cent,’ said Bernstein, adding that he believed Grainger had been offered lower rates but rejected them.

Grainger chief Cunningham hotly refuted suggestions its interest bill could be cut by a third.

‘We have never had an offer to refinance all our debt at 3.5 per cent,’ he said.